The second largest state-run lender Bank of Baroda has reported a 9.5 percent on-year growth in net profit for the June quarter to Rs 4,458 crore buoyed by better asset quality and higher interest income as credit demand remained buoyant.
Gross non-performing assets (NPA) ratio stood at 2.88 in the reporting period compared to 2.92 in March 2024 and 3.51 in June 2023, while net NPA ratio stood at 0.69 as against 0.68 percent in March 2024 and 0.78 percent in June 2023, the bank management told reporters in an earnings call Wednesday.
In absolute terms, GNPA eased to Rs 30,873.14 crore from Rs 31,833.63 crore in March and Rs 34,832.16 crore in June 2023. Similarly, NNPA fell to Rs 7,231.53 crore from Rs 7,213.34 crore in March and Rs 7,482.45 crore in June 2023.
Accordingly the slippage ratio sequentially declined by 7 basis points to 1.05 as against 1.12 in Q4FY24. In the reporting quarter, fresh slippages stood at Rs 2,787 crore. Majority of the slippages came from MSME accounts worth Rs 1,206 crore, followed by Rs 842 crore from retail and Rs 644 crore from agriculture.
The key net interest income (NII) grew 5.5 percent on-year to Rs 11,600 crore and non-interest income stands at Rs 2,487 crore.
Global NIM stands at 3.18 percent and domestic NIM stood at 3.30 percent and international NIMs at 2.23 percent.
In the reporting quarter, global deposits grew to Rs 13.07 trillion from Rs 12 trillion and global deposits grew 8.9 percent. Domestic deposits rose 5.3 percent to Rs 11.1 trillion, and international deposits jumped 34.7 percent to Rs 2.02 trillion.
Global advances jumped 8.1 percent to Rs 10.72 trillion. In global advances, retail advances grew 20.9 percent to Rs 2.23 trillion.
The bank expects 12-15 percent impact from the new liquidity coverage ratio that the RBI wants to implement from next April, the management said.
The bank's shares closed 0.7 percent lower at Rs 254.50 on the BSE whose benchmark rose 0.35 percent, rising for the fourth day.